Japan's current account hits surplus for fifth month

Thanks to lower oil prices that drove surplus to 433 billion yen.

According to BBVA Research, Japan's current account posted a surplus in June for the fifth consecutive month (433 billion yen, or US$5.5 billion), thanks to lower oil prices.

Here's more from BBVA Research:

Current account inflows are being sustained by recurring income flows from overseas business operations, and the current account is expected to remain at about 2% of GDP in the medium term despite being under downward pressure in the near term on global headwinds.

Looking ahead, we expect the current account surplus to come under increased pressure should the European debt crisis deteriorate further. The surplus could support further yen strength (now 78.3/USD) despite the authorities’ efforts to weaken the currency.